ICICI Bank increases min savings balance to Rs 50K for new a/cs

ICICI Bank has raised the minimum balance requirement for its new savings accounts opened on or after August 1 by five times to Rs 50,000.

The minimum monthly average balance (MAB) for savings bank accounts till July 31, for the bank customers was Rs 10,000.

Similarly, the MAB for semi-urban locations and rural locations has been increased five times to Rs 25,000 and Rs 10,000, respectively, according to information available on the ICICI Bank website.

Customers failing to meet the MAB will be liable to pay penal charges of 6 per cent of the shortfall, or Rs 500, whichever is lower.

The bank offers 2.5 per cent per annum interest in its savings account, it said.

Customers who have opened accounts before August 1 will have to maintain Rs 10,000 as of now.

Salary accountholders or PM Jandhan customers and basic savings bank deposit accountholders are exempt from this high MAB as these are zero balance accounts.

Accountholders with higher MAB will enjoy certain benefits such as free NEFT fund transfer, complimentary three cash transactions per month, thereafter Rs 150 per transaction. GST shall be applicable on all mentioned charges, it said.

The hike in MAB comes at a time when public sector banks have rationalised their penalties or completely waived them off.